Copper Slides as Chinese Demand Wavers, Inventories Rise

Key Moments

Copper prices fell after Tuesday’s 4.6% surge, the largest one-day gain since November 2022.
Rising inventories in London Metal Exchange warehouses in Asia and weaker Chinese spot demand weighed on sentiment.
Glencore Plc agreed to sell 40% of its stakes in two African copper operations to a US government-backed group.

Market Reverses After Sharp Rally

Copper prices dipped mid-morning in London, giving back part of Tuesday’s strong gain. The 4.6% jump was the steepest single-day increase since November 2022. The pullback shifted focus back to Chinese demand.

Base and precious metals have seen wide swings this year. Gold and silver rose on Wednesday after earlier drops, as traders exited bullish positions. This added volatility across the complex.

Year-to-Date Performance and Drivers

Copper, widely used in pipes and batteries, has gained about 8% this year after a record above $14,500 last week. Speculative activity in China and long-term demand for electric vehicles, renewables, and data centers have supported the rally.

Soft Chinese Demand and Rising Stockpiles

Despite bullish trends, the Chinese spot market has weakened. Higher prices made copper less attractive for downstream fabricators. On Wednesday, inventories in LME warehouses across Asia rose noticeably.

Additional supply is expected. Traders shipped extra spot cargoes from Africa to China last week, exploiting a short-lived arbitrage when Shanghai futures outpaced London prices.

Chinese Production and Smelter Outlook

The China Nonferrous Metals Industry Association expects refined copper production to rise 5% this year, after a 10% jump in 2025. Domestic smelters, producing 47% of global output, have remained strong even as processing fees fell due to new capacity.

Tuesday’s price spike followed comments urging authorities to expand strategic copper reserves and encourage manufacturers to increase commercial inventories.

Spot Trading Activity in China

Refined copper spot trading in China reached 28,900 tons on Tuesday, according to Mysteel Global. While 24% lower than the prior three-month peak, volumes remain relatively high compared to November.

Strategic Deals in African Copper Assets

Glencore Plc will sell 40% of its stakes in two African copper businesses to a US government-backed group. Orion CMC, led by Orion Resource Partners with support from the US International Development Finance Corp., signed an agreement to acquire stakes in copper-cobalt mines in the Democratic Republic of Congo.

Price Snapshot Across Metals

Copper traded at $ a ton on the London Metal Exchange as of 10:34 a.m. local time. Other base metals ranged from flat to slightly lower.

Metal	Market	Price / Performance	Time Reference
Copper	London Metal Exchange	$ a ton	10:34 a.m. local
Copper	Year-to-date	Up about 8%	After record above $14,500
Refined copper spot volume	China	28,900 tons (down 24% from prior peak)	Tuesday